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The growth in the use of electronic payment products, such as credit and
debit cards, added $983 billion to the Gross Domestic Product (GDP) of
the 56 countries examined between 2008 and 2012, according to a study
conducted for Visa by Moody’s Analytics, a leading independent provider
of economic forecasting.

The study of 56 countries that represent 93% of global GDP concluded
that: “Card usage makes the economy more efficient, yielding a
meaningful boost to economic growth, year after year, through a
multitude of factors including transaction efficiencies, consumer access
to credit and consumer confidence in the payment system overall.”

Increases in card consumption contributed to an average additional
growth in GDP of 0.17 percentage point per year over the five-year
period, the study found. Over the same time period, GDP in those
countries grew by an average of 1.8 percentage points.

“Despite a challenging global economic landscape, the increased
penetration of payment cards helped boost consumer consumption and, on
average, added to GDP,” noted Mark Zandi, Chief Economist of Moody’s
Analytics. “This was particularly true for emerging markets. The
increase in consumption parallels the growing popularity and
accessibility of electronic payments among global consumers, and the
findings point to the need for governments to adopt policies that
encourage the shift to efficient and secure electronic forms of
payments.”

“The findings from the study confirm what Visa has long maintained – the
migration to electronic payments increases economic efficiencies and
supports global economic growth,” said Charlie W. Scharf, CEO of Visa
Inc. “Notably, electronic payments helped to mitigate what would
otherwise have been an even slower recovery from the global recession as
card penetration and usage provided an important and measureable boost
to economies.”

According to the report, from 2008 to 2012 global real GDP was only 1.8%
per annum. Without increased card usage, that growth would have been
just 1.6%.

Other highlights in the study include:

U.S. Economic Growth: Card usage in the U.S. increased GDP by
0.3 percent, adding $127 billion to the U.S. economy.

Global Economic Growth: In some countries, card usage increased
consumption significantly – at the top of that list: China by 4.89%;
Chile by 1.28%; and Brazil by 1.15%.

Value of Electronic Payments: The study concluded that
increased credit and debit card usage contributes to economic activity
by reducing transaction costs and improving efficiency in the flow of
goods and services. The advent of credit and debit cards has greatly
aided consumers’ ability to optimize consumption decisions by giving
them secure and immediate access to all of their funds on deposit or a
line of credit. Merchants also benefit because there is less cash and
check handling in the system, eliminating the burdens and risks
associated with holding cash. In addition, the dramatic growth of
ecommerce would not be possible without global electronic payment
systems, which allow the safe and easy transfer of funds from
consumers to merchants.

Supporting Government: Electronic payments lead to a reduction
in the gray economy by increasing transparency and generating
additional tax revenue.

Impact of Future Card Growth: Moody’s Analytics found that a 1%
increase in card usage across the 56 countries in the study produces
an annual increase of 0.056% in consumption. Given recent card
penetration growth rates and the additive effects calculated on future
GDP, Moody’s Analytics estimates a meaningful 0.25% addition to
consumption and 0.16% additional GDP.

This survey is the second iteration, following a study conducted by
Moody’s Analytics from 2003 to 2008.

About Visa Inc.: Visa is a global payments technology company
that connects consumers, businesses, financial institutions and
governments in more than 200 countries and territories to fast, secure
and reliable electronic payments. We operate one of the world’s most
advanced processing networks—VisaNet—that is capable of handling more
than 24,000 transaction messages a second, with fraud protection for
consumers and assured payment for merchants. Visa is not a bank and does
not issue cards, extend credit or set rates and fees for
consumers. Visa’s innovations, however, enable its financial institution
customers to offer consumers more choices: pay now with debit, ahead of
time with prepaid or later with credit products. For more information,
visit corporate.visa.com.

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